Email

ISLAMABAD: After lengthy delays, an $8.2 billion revamp of a colonial-era rail line snaking from the Arabian Sea to the foothills of the Hindu Kush has become a test of Pakistan’s ability to rethink the signature Chinese ‘Silk Road’ projects due to debt concerns.

The rail project linking Karachi to Peshawar is China’s biggest Belt and Road Initiative (BRI) project in Pakistan, but Islamabad has balked at the cost and financing terms.

Chinese envoy says Beijing will only proceed with projects that Islamabad wants

“We are seeing how to develop a model so the government of Pakistan wouldn’t have all the risk,” Minister for Planning, Development and Reforms Khusro Bakhtyar said at a recent press briefing.

The cooling of enthusiasm for China’s investments mirrors the unease of incoming governments in Sri Lanka, Malaysia and the Maldives, where new administrations have come to power wary of Chinese deals struck by their predecessors.

But to Islamabad’s frustration, Beijing is only willing to review projects that have not yet begun, three senior government officials have told Reuters.

China’s foreign ministry said, in a statement in response to questions faxed by Reuters, that both sides were committed to pressing forward with BRI projects, “to ensure those projects that are already built operate as normal, and those which are being built proceed smoothly”.

Pakistani officials say they remain committed to Chinese investment but want to push harder on price and affordability, while re-orientating the China-Pakistan Economic Corridor (CPEC) — for which Beijing has pledged about $60 billion in infrastructure funds — to focus on projects that deliver social development in line with PM Khan’s election promises.

China’s Ambassador to Pakistan Yao Jing told Reuters that Beijing was open to changes proposed by the new government and “we will definitely follow their agenda to work out a roadmap for BRI projects based on ‘mutual consultation’”.

“It constitutes a process of discussion with each other about this kind of model, about this kind of roadmap for the future,” Mr Yao said.

Beijing would only proceed with projects that Pakistan wanted, he added. “This is Pakistan’s economy, this is their society,” he said.

Islamabad’s efforts to recalibrate CPEC are made trickier by its dependence on Chinese loans to prop up its vulnerable economy.

Growing fissures in relations with Pakistan’s historic ally the United States have also weakened the country’s negotiating hand, as has a current account crisis likely to lead to a bailout by the International Monetary Fund, which may demand spending cuts.

“We have reservations, but no other country is investing in Pakistan. What can we do?” one Pakistani minister told Reuters.

Crumbling railways

The ML-1 rail line is the spine of the country’s dilapidated rail network, which has in recent years been struggling to survive as passenger numbers plunge and the vital freight business nosedives.

The Khan-led government has vowed to make the 1,872km line a priority CPEC project, saying it will help the poor travel across the country. But Islamabad is exploring funding options for CPEC projects that depart from the traditional BRI lending model — whereby host nations take on Chinese debt to finance construction of infrastructure — and has invited Saudi Arabia and other countries to invest.

One option for ML-1, according to Pakistani officials, is the build-operate-transfer (BOT) model, which would see investors or companies finance and build the project and recoup their investment from cash-flows generated mainly by the rail freight business, before returning it to Pakistan in a few decades time.

Ambassador Yao said Beijing was open to BOT and would “encourage” its companies to invest.

Rail mega-projects under the BRI umbrella have run into problems elsewhere in Asia. A line linking Thailand and Laos has been beset by delays over financing, while Malaysia’s new Prime Minister Mahathir Mohamad outright cancelled the Chinese-funded $20bn East Coast Rail Link (ECRL).

Beijing is happy to offer loans, but reticent to invest in the Pakistan venture as such projects are seldom profitable, according to Andrew Small, author of a book on China-Pakistan relations.

“The problem is that the Chinese don’t think they can make money on this project and are not keen on BOT,” said the author.

Comments (202) Closed

The way all this being handle is awful! friends don't negotiate in Media. i hope this is not to make someone else happy. the timing is also bad! FM being in U S.

Recommend0

Babu

Oct 01, 2018 08:34am

Good. Be careful of Chinese intentions. Pakistan first.

Recommend0

Dilruba

Oct 01, 2018 08:36am

Make Gwader and Hambantota port Sister port

Recommend0

desi dimag

Oct 01, 2018 08:42am

People won't like it. CPEC is the only hope for them.

Recommend0

desi dimag

Oct 01, 2018 08:44am

Pakistani People trust China more than Pakistan.

Recommend0

Kunal majumdar, gurgaon

Oct 01, 2018 08:47am

Finally, reality dawns on cpec.

Recommend0

Prateek

Oct 01, 2018 08:50am

Come on Pakistan get out of Chinese clutches while you still can. It's insane how previous government allowed all this

Recommend0

Ankit

Oct 01, 2018 08:50am

Its a sensible article. A global picture about how Chinese debt trap works. A wakeup call for concerned.

Recommend0

Kya hua

Oct 01, 2018 08:51am

What happened to the all weather friend ?

Recommend0

MG

Oct 01, 2018 08:57am

Better late than never. Let us stop from going into trap. CPEC is China's plan and not Pakistan's plan

Recommend0

Dilip Thorat

Oct 01, 2018 08:59am

Pakistan's enemy are jealous of CPEC and Pak China friendship. Go ahead Pakistan. CPEC will make you richest in the universe.

Recommend0

MG

Oct 01, 2018 09:00am

“We have reservations, but no other country is investing in Pakistan. What can we do?” one Pakistani minister told Reuters. First do a honest investigation on this and change policies that earns confidence of other nations. No one can sustain only with support of handful of countries out of 190+

Recommend0

Khurram

Oct 01, 2018 09:02am

Chinese patience also getting tested. Hope for the best.

Recommend0

ali

Oct 01, 2018 09:05am

CPEC on it's last legs

Recommend0

jameel

Oct 01, 2018 09:07am

Iron Brother has now a vice like grip....if u had opted out of Kashmir...u would have been in a much better condition.

Recommend0

T. Nazeer

Oct 01, 2018 09:09am

Both India and Pak will be Chinese colonies!!!

Recommend0

SHAKTEE

Oct 01, 2018 09:12am

I do feel sorry for IK, for the state of economy he's inherited. Looks like Pakistan is already trapped in this debt trap.

a grave mistake by ik and govt, china will not like this and such disliking cannot be favorable.

Recommend0

ali

Oct 01, 2018 09:26am

Full support to PM Khan. He is thinking about the future generations who will have to pay our 'debt' or instead pay the prize of the previous 'leaders' looting.

Recommend0

Feroz

Oct 01, 2018 09:35am

When people were asking pertinent questions about details of contracts signed and feasibility reports with financial terms of CPEC projects, they were being called foreign agents and jealous guys who did not want to see progress in Pakistan. In a world of duplicity, deceit and fake news is asking for financial details a sin ?

Recommend0

S.Mohanty - Bhubaneswar

Oct 01, 2018 09:37am

All weather friendship can't defy the truth .The euphoria over CPEC will end soon at a heavy cost .

Recommend0

Raj India

Oct 01, 2018 09:44am

CPEC, what a game changer it is.

Recommend0

Shahid

Oct 01, 2018 10:01am

Instead of taking up the ML-1 project for discussions, both the governments should renegotiate the whole package of 60 billion USD in one go. For China to act as a dependable partner and a good friend, they must extend a guaranty to the host country that their usage of CPEC and the port would at least generate a transit fee which will cancel out Pakistan's yearly repayments. CPEC must be a win win project for both the countries. China should not be taking advantage of the situation where we are desperate for foreign investment and they should not portray CPEC as a Chinese helping hand for Pakistan because whole the world knows that this is a life line project for China and is aimed at providing China with trillions of dollars worth swift market access and energy supply chain in decades to come.

Recommend0

SevenRiver

Oct 01, 2018 10:03am

China's development idea is good, but their intensions are extremely doubtful.

Recommend0

Saul Goodman

Oct 01, 2018 10:03am

The Chinese have all the leverage and they know it.

Recommend0

Haryanavi_chora

Oct 01, 2018 10:07am

India analysed it long back...

Recommend0

citizen

Oct 01, 2018 10:10am

Dont forget that chinese are cut throat business people...Friendship is only secondary....

Recommend0

Udayan

Oct 01, 2018 10:10am

Even a blind squirrel finds a nut occasionally

Recommend0

Chinpaksaddique

Oct 01, 2018 10:18am

PMIK is smart and should not be mislead. CPEC should continue at any cost. It’s the pride of the nation. China is a friend.

Recommend0

Chaman Bahar

Oct 01, 2018 10:20am

We thought CPEC has already started delivering...it is yet to begin

Recommend0

Suraj71

Oct 01, 2018 10:24am

It's another trap don't scrap pro Pak projects. Just see the projects carefully. All the roads connecting China to Pak port and market have been either completed or about to complete.Only those projects are being halted or stoped which are pro Pak means connecting Pak cities and manufacturing hubs.Current govt. wants to extend favour to China like previous govt. by stoping these projects on the name of debt. IK will stop the projects and people will consider it reduction in debt.

Recommend0

Shakhil Ahmed

Oct 01, 2018 10:25am

Too bad, it was to be game changer to our country. So sad IK is playing with it perhaps for his own benefits.

Recommend0

John

Oct 01, 2018 10:27am

India had infact warned all south Asian nations, Pakistan, srilanka, Maldives against this debt trap. Its still not late to get out of ot

Chinese will only invest when they are sure they will get hefty returns!. They don't give anything for free as they totally business minded!!!

Recommend0

BhaRAT

Oct 01, 2018 10:35am

PMLN gave Pakistan these debt trap projects Imran khan was warning them even back then

Recommend0

RAJA CHILL

Oct 01, 2018 10:36am

When Indians said the same thing they were marked as Jealous.

Recommend0

Khurram

Oct 01, 2018 10:45am

Very late decision.

Recommend0

A Shah

Oct 01, 2018 10:45am

Basically what the world has been telling you. CPEC is a flop

Recommend0

shashi

Oct 01, 2018 10:46am

“The problem is that the Chinese don’t think they can make money on this project and are not keen on BOT,” said the author.
.
This says all. Apart from this, China brings even unskilled labour from its mainland and Pakistani people are losing out on employment opportunity as well.
So, no employment, no impetus to local economy, no profitability but only debt burden for Pakistan. The country must renegotiate the terms as others have done recently.

Recommend0

Nadeem

Oct 01, 2018 11:04am

@nk you are mistaken that China is a friend.all relations
and benefits are for own needs.

Recommend0

whats in a name

Oct 01, 2018 11:06am

@Dilip Thorat That is not what your present govt. is thinking.

Recommend0

Ahmed Saroosh Sultan

Oct 01, 2018 11:11am

But CPEC is game changer.

Recommend0

Sat

Oct 01, 2018 11:12am

The same rail project could be done at half the price if the financing is done separately.

Recommend0

Fahim Khalil

Oct 01, 2018 11:16am

China being a time tested and very very sincere friend of Pakistan must have to be cooperative in resolving our massive debt burdon and also rethink about giving equal opportunities for improving economic situation of Poor people of Pakistan. . Stronger the Pakistan stronger will be the China

Recommend0

Pro

Oct 01, 2018 11:24am

It's just that IK aka Naya Pakistan government re-evaluating the feasibility of the project which was not done meticulously and microscopically by the petty and slack administration under Nawaz Sharif's Purana Pakistan. Pakistan will never refuse a win-win project with China.

Recommend0

Ashraf Gilani (Kashmir, India)

Oct 01, 2018 11:30am

CPEC is a game changer, but for Chinese. :-)

Recommend0

Gopal patel

Oct 01, 2018 11:31am

Pakistan should learn lessons from the experience of Sri Lanka and Malaysia..

Recommend0

Saif Zulfiqar

Oct 01, 2018 11:39am

You can not get anything on golden plate. You have work hard to earn it.

Recommend0

Last Word

Oct 01, 2018 11:40am

Better late than never. Srilanka and Malaysia are already repenting as they are unable to pay the debt taken from China.

Recommend0

Micheal

Oct 01, 2018 11:42am

Too late.

Recommend0

AW

Oct 01, 2018 11:48am

The agreements under CPEC were signed in secrecy by the N league government and therefore illegal. Every agreement needs to be reviewed and renegotiated, then made public as well as must be presented and discussed in the parliament for ratification. 90% benefit of the CPEC accrues to China so 90% of the money required should be in grants and not in form of double digit interest loans which Pakistan can NOT afford. The agreements should also be audited to discover hidden commissions of sharif brothers

Recommend0

Altaf Ahemed Ansari

Oct 01, 2018 11:56am

Not a single country in the world, where Chinese have given loan are in profit. This is their strategy to put money and occupy the country. Pakistan has taken a good stand.
Hope this government will take decision wisely and save the country.

Recommend0

mady

Oct 01, 2018 11:59am

Few months back you were advising India to join the golden goose CPEC, why you are reticent now.

Recommend0

Gaz

Oct 01, 2018 12:04pm

@Dilip Thorat why are Indians then spending day and night worrying about Pakistan economy and debts.

Recommend0

BK

Oct 01, 2018 12:07pm

China has plenty of reserves but no one wants to take loan from China due to high interest rates.
So what China does is, it develops or supports totalitarian regimes, sweetens the deal for the rulers so that they take the bait.
Once bait is taken, China exports its own surplus man/ material for the project; the country which took the loan now spends the same loaned money to buy Chinese manpower/ material.
Now the borrower needs to pay back Chinese loan. So either the borrower takes loan from other International institutions and services Chinese debt or give away the infrastructure developed on long lease to China.
Essentially China:
1. Sells its surplus man/ material which no one wants.
2. Loans it's surplus reserve sitting idle at high interest rates.
3. Indirectly sucks money from international institutions through the bogey borrower, in case the borrower takes loan from these institutions.
4. In case borrower defaults, then china assumes strategic control of the asset.
A win-win for China but lose-lose for others.

Recommend0

khanm

Oct 01, 2018 12:12pm

Why are we involved in expensive projects, if we cannot sustain them...Abundance is scooped from abundance yet abundance remains. but not the scarcity...Don't spend more than you make. Find ways to cut back, count your pennies, tighten your belt they advise. Rather than suggest that you get busy and make more money, they tell you to rein in your spending.
Should you spend more than you bring in? No, you shouldn't. The same goes for wasting your money. Your money is an asset and should be treated as such. Spending more than you make will eventually land you square in the poor house. So does that mean you have to cut back to the bare bones and do without? If you listen to the gurus, yes, it does.
I'd like to offer up a different approach. Instead of constantly looking for ways to cut back, why not look for ways to INCREASE your means?

Recommend0

SDA

Oct 01, 2018 12:24pm

@Prateek May it was brotherly advise from Modi to Nawaz Sharif.

Recommend0

John

Oct 01, 2018 12:26pm

Unlike in Sri Lanka's, Maldive's and Malaysia's case, for Pakistan I fear that it's already too late. SL being the worst case had to loose just an important port. But for Pakistan, the cost will be much larger. Gwadar is already gone for 30 years. They already control your stock market and other important institutes. Plus you already have to pay a loan in excess of $67 billion - which is 4 times of your total Forex reserves.

Recommend0

SDA

Oct 01, 2018 12:26pm

@Raj India Can you stop being sarcastic

Recommend0

Lilly

Oct 01, 2018 12:29pm

Till now you have seen China, the friend. From now on you will see China, the enemy.

Recommend0

Jjacky

Oct 01, 2018 12:45pm

There goes cpec.

Recommend0

ABE

Oct 01, 2018 12:56pm

Since Chinese are the likely to benefit more from this road than Pakistan, China should bank-roll the project with financing and foot at least 80% of the bill.

Recommend0

you said it

Oct 01, 2018 01:00pm

“We have reservations, but no other country is investing in Pakistan. What can we do?” one Pakistani minister told Reuters.

Recommend0

Prateik

Oct 01, 2018 01:19pm

CPEC was highlighted only for election mileage.

Recommend0

Sagar

Oct 01, 2018 01:42pm

Shaikh Chilli was once sitting on a tree cutting a branch. Many warned him that he would fall down. But he shooed them away. What happens in the end? Pakistan's case isn't too different. The warning signs were there since Day 1. Some sane countries got out of this debt trap in time. You on the other hand put your foot on the pedal accelerating towards the land of debts. Some serious Visionary leaders you have got there.

Recommend0

Mitzvah Kehimkar, Beersheba, Israel

Oct 01, 2018 01:43pm

Game changer to game over.

Recommend0

Texan

Oct 01, 2018 01:47pm

Pakistan should have some projects where profits are shared based on a return on investment that gives Chinese better return but not until the projects are profitable.

Recommend0

javed

Oct 01, 2018 01:48pm

Pakistan should learn some lessons from Ceylon's and Malaysia's strategical resetting in investments from China.

China is a very very shrewd investor. Pakistan MUST watch Pakistan's interest FIRST.

Recommend0

Billal

Oct 01, 2018 01:51pm

The new Govt would not like to take the blame for this colossal blunder so they would surely want to highlight to public as a failure at early stage of their coming into power. So here goes Naya Pakistan with all the transparency (pointing finger at previous government). Nobody seems to want to take responsibility for it. Good reading for visiting Saudi delegation.

Recommend0

Texan

Oct 01, 2018 01:54pm

Spending should never exceed the revenues. Here its mostly future revenues until West China starts developing. With trade war against US, their economy will slow down and their plans to invest and grow new underdeveloped regions will suffer. Yes, one day this will be the most efficient trade route but no so soon. May be 10-20 years away.

Recommend0

Being sensible, from India

Oct 01, 2018 01:54pm

Tough situation for Pak. Changing arrangements midway in such complex projects is not east.
The Pk government must renegotiate and replan the projects to minimize risk and damage to Pakistan. Was a sand castle to begin with. Chinese have NOT invested anything, they have just given loans, so they do not have any risk with the investment or changes. All risk is being borne by Pakistan as a country.
Wonder why Pakistanis keep calling the loans investment.

Recommend0

jameel

Oct 01, 2018 02:01pm

@T. Nazeer bhai why drag India in the muck

Recommend0

H O Saud

Oct 01, 2018 02:02pm

Not sure what we have committed to the Saudi's that they are willing to chip in. Probably the next govt will let us know.

Recommend0

Rana

Oct 01, 2018 02:19pm

@T. Nazeer India is six times and 10 times more in population and economy of Pakistan.China invest in joint venture in India and India don't take loan from china.

Recommend0

timetostopthis

Oct 01, 2018 02:35pm

Learn some lessons from your neighbours. Why do you think India keeps China at arms length?

Recommend0

Kashmiri Bhai

Oct 01, 2018 02:37pm

This is typical Chinese Mantra to trap the poor countries with debt which they can’t pay, then take over the port or road for a long term lease. Look what they have done to Sri Lanka.

Recommend0

new

Oct 01, 2018 02:37pm

" Game" changer

Recommend0

George

Oct 01, 2018 02:39pm

"The problem is that the Chinese don’t think they can make money on this project and are not keen on BOT"

Why making money is Number one objective?

Why not offer low interest rate loans?

Recommend0

Rana

Oct 01, 2018 02:39pm

Remember the time when Pakistan criticizing India for not doing CPEC .

Recommend0

Sana

Oct 01, 2018 02:43pm

when did Pakistan start to worry about Debt???

Recommend0

Biscuit

Oct 01, 2018 03:05pm

Chinese investment will make Pakistan the most developed country in the universe. Go Pakistan, don't stop. Your neighbours are just jealous of your development

Recommend0

shrirang

Oct 01, 2018 03:08pm

Best U-turn

Recommend0

AbdulRahman

Oct 01, 2018 03:23pm

There is still time to review the project since this is in initial stage. Better late than never! Go ahead and check all the factors responsible for the progress and development and save yourself from the debt trap. Chinnese are open to negotiate. Even they don't want to get into losses. Further, once the picture is clear and liability is less then you will have to look for the foreign the investment from other countries.

Recommend0

Kabir

Oct 01, 2018 03:35pm

The arlticle correctly categories CPEC as a loan, rather than investment. It is understandable that the loans are expensive, but guaranteeing all contracts to China without tenders is unbelievable

Recommend0

Kashmiri Bhai

Oct 01, 2018 03:48pm

China cannot be trusted. Just look what they have done to Sri Lanka’s port which they financed.

Recommend0

Sohail Khan UK

Oct 01, 2018 03:49pm

Pakistan must have Pak first policy above all else, just as China does. The previous goverment did not properly negiotiate the CPEC projects on a cost & benefit basis. China should pay for the projects that it will benefit from and these should NOT be as onerous loans which Pakistan cannot afford. The IK goverment is right on the money in its thinking and reservations about the CPEC projects.

Recommend0

RAja Raman

Oct 01, 2018 03:51pm

@BhaRAT, Not long ago there was euphoria about CPEC. Now, all the blame is put on PML-N. Big projects execution takes time and patience is needed.

Recommend0

mukul

Oct 01, 2018 04:00pm

Some respect for IK and his govt is due. They are clearly putting Pakistan first and are patriots which is great !
I personally feel that India should have accepted IK's dialogue offer. After years, it seems there is someone in Pakistan who can take decisions and has establishment backing him.
If IK is firm, there is no doubt others will come forward including Saudi or IMF to help Pakistan get out of this debt trap. Fundamentally, you are still a strong country with a large population and abundant natural resources. If leveraged well they can do wonders to your economy. Wishing our brothers and sisters across the border all the best !

Recommend0

watchman

Oct 01, 2018 04:13pm

china being close strategic friend should given free grants and aid like america and not burden the pak people with high interest loans

Recommend0

Red Indian

Oct 01, 2018 04:14pm

CPEC is the game changer for China

Recommend0

tau panna

Oct 01, 2018 04:15pm

@Raj India

Recommend0

Fredric suresh

Oct 01, 2018 04:27pm

Beware of the dragon bearing gifts

Recommend0

PS

Oct 01, 2018 04:29pm

Well done Imran. Only good will come out of such clear thinking.

Recommend0

Manoj

Oct 01, 2018 04:29pm

It's scary that an agreement signed by the earlier sovereign Government of Pakistan is being rescinded. It will only worsen Pakistan's name and interest rates for future loans are going to go up further.

Recommend0

Rohail

Oct 01, 2018 04:29pm

Country and Countrymen’s interest first then anything else.

Recommend0

Shah

Oct 01, 2018 04:53pm

The Early Harvest Projects, which are the most expensive with the smallest output, are debt trap for sure.

Recommend0

Iftikhar Husain

Oct 01, 2018 04:56pm

All problems will be solved if the flowing money from Pakistan to west is stopped.

Recommend0

kishan lal

Oct 01, 2018 04:56pm

China wants to have control all over asia except Russia as control over Russia is just impossible. Thus want to become the solo economic power. If china intention is really development altogether it must me rational and kind in deals. First step it should free Sri Lanka from its 99yrs lease and other nations with such deals. It is a matter of fact how china able to have modern know how by providing making facilities in its land to mega companies world wide.

Recommend0

Amir Sabir

Oct 01, 2018 05:25pm

Nawaz Sharif did not think or rethink anything - except making money for himself, family, friends and political allies.

Recommend0

Ashish

Oct 01, 2018 05:28pm

@T. Nazeer Why are you including India.

Recommend0

Hwh

Oct 01, 2018 05:38pm

@Kya hua Global warming, pollution, so weather is changing. But the damage is almost permanent.

Recommend0

moona

Oct 01, 2018 05:39pm

As per the instructions of USA and KSA?

Recommend0

Nick

Oct 01, 2018 05:42pm

@AJ Kashmir first.

Recommend0

Just Saying

Oct 01, 2018 05:46pm

China started the One Belt One Road project to absorb its excess construction capacity such as steel, glass, cement, machinery and labor. Much like the Chinese ghost cities and ghost infrastructure, these projects have little economic value. China has loaned out its excess capital at usurious rates for other countries to pay for its excess capacity. Every country that the OBOR has touched is in the throes of a similar debt crisis.

Recommend0

Khany

Oct 01, 2018 05:56pm

All this was messed up by Nawaz Sharifs corrupt Goverment which made very bad deals. Yes it looked good in the media listening to over 60 billon dollar projects but not realising the debt impact and how we will make a revenue profits to pay the loan debt off. Pakistan rarely has a foreign investment. Theirs no attraction. But I still have the confidence Imran Khans Goverment will turn it around and he will come up with a good plan.

Recommend0

two cents

Oct 01, 2018 06:23pm

@SDA Everyone that is blaming NS should realize that it is his opposition to the real boss cost his job.

Recommend0

two cents

Oct 01, 2018 06:24pm

so much for game over

Recommend0

Kp

Oct 01, 2018 06:40pm

@Fahim Khalil very naive

Recommend0

A Shah

Oct 01, 2018 06:43pm

I thought this was supposed to be a game changer and all that

Recommend0

Zaryab Raza

Oct 01, 2018 06:47pm

So many indians here, since when india started caring about us?

Recommend0

Jahangir

Oct 01, 2018 07:07pm

@Raj India Right you are. Game's already beginning to change.

Recommend0

GKA

Oct 01, 2018 07:32pm

BOT is equally expensive. Requires equity returns. Just shifting the investor from China to Saudi does not create a change in indebtedness. actually makes it worse because if pakistan defaults, not both Saudi and China complian.

Recommend0

Maria enteparia onnuchoriu

Oct 01, 2018 07:34pm

Once CPEC completed, all the major world powers will be lining up for a piece of the pie.

Recommend0

Global Peace

Oct 01, 2018 07:52pm

Just allow Indian trade you wont need any CPEC. Think about it its mutually beneficial, no loan , no bond. Simply trade. Open the gates. Also Pakistan can just allow India to trade with Afghan andvearn from transit as well.

Recommend0

Hwh

Oct 01, 2018 07:53pm

Pakistan would have been better off with these Chinese money. Now they are totally under Chinese trap. The realisation is too little and too late.

Recommend0

Pak_UK

Oct 01, 2018 07:54pm

Very sensible. Incompetent previous govt didn’t negotiate well.

Recommend0

ijaz A.

Oct 01, 2018 08:04pm

Pakistan should renegotiate CPEC wherever its possible, but continue developing the Infrastructure as it has the long term benefits for the economy. Increase the tax base and collection system.

Recommend0

Lahori kid

Oct 01, 2018 08:18pm

I've been saying this for over a year, the deals made under the old government, PML-N, were too Chinese side heavy, Pakistan was taking all the risk, taking all the loans, expected to pay all the interest, yet the whole CPEC was designed by the Chinese, for the Chinese, yes Pakistan would definitely benefit from CPEC but not like everyone was made to think. I see no issue in our government wanting to rethink and renegotiate the plans to benefit Pakistan like they benefit China. Another thing, this CPEC was designed to add Trillion dollars to their trade plans.

Recommend0

Lahori kid

Oct 01, 2018 08:19pm

@desi dimag, Hope yes, drowning in dept for decades, NO.

Recommend0

Saul Goodman

Oct 01, 2018 08:36pm

China is not interested in the development of Pakistan. Its only goal was to gaining control & access to Gwadar, which it has accomplished.

Recommend0

Jai Ho

Oct 01, 2018 08:36pm

Chinese are torturing Uighirs. Why silent there?

Recommend0

akram

Oct 01, 2018 08:36pm

all these Indian comments seeking to gloat as if CPEC has been cancelled, its actually funny. This article is the view of Andrew Small, a foreign author. Don't worry many of you Indians will live to see CPEC succeed on a scale you can never envisage. watch this space.

Recommend0

Manjeet

Oct 01, 2018 08:58pm

Indian born Gita Gopinath appointed chief IMF economist.

Recommend0

Jayanta Roy

Oct 01, 2018 09:12pm

@T. Nazeer India !!! no way...

Recommend0

Farhan

Oct 01, 2018 09:55pm

So they are asking Pakistan to select the projects for completion

Recommend0

mady

Oct 01, 2018 10:03pm

@Fahim Khalil "Stronger the Pakistan stronger will be the China"
China is already stronger.

Recommend0

Aziz Rakla

Oct 01, 2018 10:38pm

Present Government negotiating CPEC in the best interest of people of Pakistan, jobs and business for Pakistani workers and businessmen. Like Mahathir is negotiating with China after removing corrupt government. Please be patience China will not go anywhere, it is in interest of China also.

Recommend0

Sachin

Oct 01, 2018 10:56pm

Your "Enemy" India warned you on the debt trap when you were starting the venture with your all weather "friend".

Recommend0

Bij

Oct 01, 2018 11:11pm

All countries in the project will be swallowed ...look at Sri Lanka / Malaysia and others are now so cautious or tooo late in realising debt . Look at GDP growth for last two decades

Recommend0

A Shah

Oct 01, 2018 11:56pm

Woken up have we?

Recommend0

A Shah

Oct 01, 2018 11:57pm

China is friend to no one

Recommend0

PC

Oct 02, 2018 12:22am

Beware. One Indian origin US Citizen Mrs. Gopinath will be the next IMF Chief.

Recommend0

Omar

Oct 02, 2018 12:22am

As a Pakistani I can say this with conviction that Pakistans natural ally in the region can only be India. You cannot eliminate your common bond thats centuries old.

Recommend0

jamshed

Oct 02, 2018 12:50am

@AJ Trade with India is a strategic issue and no one in Pakistan can think of trade when India and its present government shows so much animosity against Pakistan. Pakistan by granting India MFN status will only lose and it should never happen under present circumstances.

Recommend0

Faisal

Oct 02, 2018 01:04am

@nk Friends also dont rob friends like that.

Recommend0

jamshed

Oct 02, 2018 01:09am

@Feroz Someone has to question people like you who come here with an anti-Pakistan agenda. And why so much interest in Pakistani affairs when you have more than a handful of issues that need urgent attention and your "expert" advice?

Recommend0

Zeeshan Ahmed

Oct 02, 2018 01:14am

@nk It is due to this attitude of friends not negotiating in media, that there was no transparency in what previous governments did and got away with.

Recommend0

Zeeshan Ahmed

Oct 02, 2018 01:15am

Good call by the new government, tread cautiously and negotiate terms that benefit Pakistan, not just China - the Nawaz government was too lazy and inefficient to realize this and let China dictate all the terms.

Recommend0

Amarnath

Oct 02, 2018 02:40am

This is a very smart move.
I am sure China will not object to other parties investing. If China objects or funds/supports Pakistani parties that object to others investing in CPEC, then Pakistani people and leaders have every reason to be worried.
There already are other counties that are scaling down BRI projects out of fear of new colonialism.
The line between investment and takeover of assets (land/port/rail-line/powerplants) is very thin.... that line is crossed when loans go bad. And it does not take much.

Recommend0

Omair

Oct 02, 2018 02:43am

Whatever Nawaz And company deal it bleeds, blue, green or orange lines and now CPEC. It was profitable when Musharaf made the deal. The Sharif's wanted more kickback and quicker. Charge all NS voters extra tax for recovery of looted money from their beloved brother

Recommend0

Zak

Oct 02, 2018 04:00am

@Rana Its only amending terms of agreement not nullifying it. CPEC is a game changer and its benefit are unimaginable.

Recommend0

Elim Garak

Oct 02, 2018 04:03am

@dr sataria In that case, China would be behaving like colonist, not freind. Pakistan Govt is elected to do what is best for Pakistanis, not the "iron brother".

Recommend0

Zak

Oct 02, 2018 04:14am

@Red Indian Not your worry. But watch its phenominal ascendency.

Recommend0

Zak

Oct 02, 2018 04:16am

@AJ Shying away, because the screams of pain in IOK are just too much. Besides India should resolve kashmir by UN plebiscite, then come join CPEC, it will lift 90% poverty stricken Indians from absolute hopeless degradation.

Recommend0

Raj

Oct 02, 2018 05:04am

You can trust India compare to china.

Recommend0

khankhan

Oct 02, 2018 05:33am

Good decision. Avoid China, they are new colonizer.

Recommend0

MMM

Oct 02, 2018 05:36am

If you ask Indians and Americans, it is a horrible deal from day one, but the CPEC is definitely a game changer and Pakistan will benefit enormously, even if the previous administration hasn’t negotiated too hard. With current trade war between USA and China, new Pakistani government has the opportunity to squeeze more and they are trying.

Recommend0

Faithumo

Oct 02, 2018 05:39am

@Dilruba; Lease them both over 99-yrs to China?
What will the "sister ports" accomplish together that they can't by providing the best service and security on their own?
They can't share equipment for cost efficiency at such distance.

Recommend0

Faithumo

Oct 02, 2018 05:42am

@Prateek : But how?

Recommend0

Lootra

Oct 02, 2018 05:55am

CPEC will resolve all issues. Wait for CPEC. Pakistan's economy will be a world beater with CPEC. Anyone remember saying or hearing those statements and more?

Now compare that to the last statement in the article "“The problem is that the Chinese don’t think they can make money on this project and are not keen on BOT,”

Credit to the new Pakistan government for being open and honest about it. It seems they are trying to do the right thing for Pakistan. But time will tell as realpolitik trumps intent.

Recommend0

Sachin

Oct 02, 2018 05:58am

China did not have bad intentions. Chinese assumed that with railways and power and ports, the Pakistan economy will grow very fast and the loans will be affordable. However Chinese overestimated the human capital and underestimated the compulsions and slowness of a democratic systems. In China people work hard for 18 hours because there is little appetite for dissent. Also govt can lock up anyone anytime and take anyones land for "national benefit". We can admire Chinese Comm Party but we cannot replicate that in India or Pakistan

Recommend0

Faithumo

Oct 02, 2018 06:01am

@nk : But honest governments inform their citizens of issues that develop in their public and commercial projects.
An informed public if good for the government for building trust with the people.
Otherwise you get conspiracy theories and much destructive gossip.

Recommend0

MG

Oct 02, 2018 06:07am

@Gaz Because no one want to live next to a person broke in all manner. We want a stable, Civilized and well governed country to be our neighbor. We are well wishers of Pakistani people.

Recommend0

Faithumo

Oct 02, 2018 06:20am

@Feroz : Best post of the day!

Recommend0

Indian

Oct 02, 2018 06:34am

This is why we Indians stayed away from it , infact not just India Malaysia, and Maldives have also rejected Chinese investment

Recommend0

Indian

Oct 02, 2018 06:47am

How many times have emotional decisions landed Pakistan in trouble in the past

Recommend0

Be honest

Oct 02, 2018 07:00am

Well done Imran Khan,

We must not let Chinese put a huge burden of loans on us, must not put ourselves and projects in jeopardy. We must push Chinese to re evaluate the costs of the projects and should lend money at the lowest interest rates. We must not let Chinese make us another Zambia.

Below paras have said all :
"China’s Ambassador to Pakistan Yao Jing told Reuters that Beijing was open to changes proposed by the new government and “we will definitely follow their agenda to work out a roadmap for BRI projects based on ‘mutual consultation’”.

“It constitutes a process of discussion with each other about this kind of model, about this kind of roadmap for the future,” Mr Yao said.

"Beijing would only proceed with projects that Pakistan wanted, he added. “This is Pakistan’s economy, this is their society,” he said".

Recommend0

Be honest

Oct 02, 2018 07:02am

@jameel it has nothing to do with Kashmir. Tell Modi to leave Kashmir and let people of Kashmir get freedom. Liberate them. AAZADI for people of Kashmir first. It is a matter of days only.

Recommend0

V. Govindarajan

Oct 02, 2018 07:04am

Good decision. Someone must stand up boldly & look at the long term interests of Pakistan. It's like taking the bull by horn. Without blaming the past, the current Government must re-evaluate the whole project in great detail, understand the cost vs benefits, revenue generation models, ability of Pakistan to repay debts etc. You can have an open debate in your Parliament or an all party meeting, committee of experts, common people of Pakistan etc. and consider everyone's views. In that way, the final decision is through a possible consensus & has wider acceptance / understanding. No political point scoring on such major decisions. I am confident that any pragmatic team will take good decisions. Best wishes

Recommend0

Be honest

Oct 02, 2018 07:08am

I wonders why Indians are so unhappy about CPEC project and are so willing to give nonsense ideas here in this blog. Pakistan is rising fast and is on the right track. We do not need your atrocious, awful and misleading ideas. Both Pakistan and China will benefit from this project.

Recommend0

boobie

Oct 02, 2018 07:16am

once the government has committed to something, they must proceed because if one does not, it shows that depending on who is in power, business and economic arrangements may not survive the next government. business confidence will sink.

Recommend0

Dough

Oct 02, 2018 07:17am

Please reconsider. China will spin its web around us.
Try to get self sufficient even if takes longer time.
If we get more people to pay taxes and if we root out corruption- we don’t need any outsider money.

Debt in any form is bad idea.

Recommend0

Point blnk

Oct 02, 2018 07:37am

Just hanging on one branch of a tree with weak roots is not sane.

Recommend0

J.Ems

Oct 02, 2018 07:57am

Can we say "All weather friend" or .. or 'east-India company'?

Recommend0

Crazyworld

Oct 02, 2018 08:54am

Wasn't CPEC supposed to be the silver bullet for all of Pakistan's ailment? Wasn't it supposed to be the magic pill that would propel Pakistan to a developed world status? Looks like it isn't... Lesson - the Chinese are no one's friends. They are businessmen. The earliest you realise this, better it would be for Pakistan

Recommend0

lkhan

Oct 02, 2018 09:10am

Good news. Such mega projects in debt a nation for generations to come. Progress in building the capacity of human resources through education, health should be a priority. Education is freedom, bringing down outrageous infant mortality levels. Both sectors would need smaller investments rather than grandiose infrastructure projects. Economic growth favouring policies such as investment friendly one-window operations, ports run efficiently and transparently, privatisation of bleeding state owned industries and so on .....

Recommend0

Truth Serum

Oct 02, 2018 09:30am

The party has just begun and I am loving it.
I told all along that Pakistan should not compromise on its core interests and financial solvency, but nobody listened.

Recommend0

Mohan

Oct 02, 2018 10:13am

CPEC! Game changer!! (Last year.)

Recommend0

@Logic

Oct 02, 2018 10:17am

Frog in the well approach past 70 years

Recommend0

Pravin Shastri

Oct 02, 2018 10:25am

@T. Nazeer India doesn't do such things my friend. We have no such agreements with china. All our development projects are either self financed or are through the soft loans from various international agencies.For example for our Bullet train project costing $15 billion, the Japanese govt. is lending us $12 billion at 0.1% interest to be repaid in 50 years and our repayment starts only after 15 years. Which means by the time we start repaying, most of the project cost will have already been recovered. This is how India negotiates her foreign deals.

Recommend0

Jamsheed

Oct 02, 2018 10:25am

Pakistan should learn to stand on her own feet. No one is friend.

Recommend0

Krishna

Oct 02, 2018 10:59am

@Dilip Thorat , good one

Recommend0

sourav ghosh

Oct 02, 2018 12:02pm

@T. Nazeer not India

Recommend0

Btg

Oct 02, 2018 12:06pm

@Zaryab Raza This is called internet and geographical boundaries doesn't exist in this place.

Recommend0

BAXAR

Oct 02, 2018 01:03pm

@Indian "This is why we Indians stayed away from it " You are NOT staying away from it. You are the only ones commenting on CPEC. Or at least, you are the only ones whose comments appear. You hardly see any Pakistani comment here.

Recommend0

Jitendraa singh

Oct 02, 2018 02:05pm

When it comes to money..Nobody is friend.

Recommend0

Vijay B.

Oct 02, 2018 03:33pm

Countries institute mega infrastructure projects to boost employment and improve the standard of living for its people. In the case of CPEC with only or mostly Chinese workers, those benefits will go to China and not Pakistan as they legitimately should. So Pakistan will be burdened with the massive CPEC debt without gaining any benefits. China has all the bases covered and skewed towards benefiting mostly China only, financially, politically, militarily, and socially.

Recommend0

sd

Oct 02, 2018 11:53pm

@Be honest we will give them permanent Azadi that's the goal.

Recommend0

Jayanthi

Oct 03, 2018 12:10am

@Shahid why should Chinese show you any charity. It was your choice. Now suffer the consequences

Recommend0

Arshaad Motisham

Oct 03, 2018 02:55am

Wait till the chinese cat pulls out her claws ....

China is not America, they dont give grants, aid and gifts ----- they want their money back .... with interest. Our Pakistan should be very very careful in using CPEC funds, otherwise we might as well hand over the port of Gwadar to the chinese, lock, stock and barrel.

Recommend0

sheraz

Oct 03, 2018 04:58am

china is going invest so much money that we have to return in coming decades. if Pakistan wont be able to payback then it will going to cost us a lot more. we might have to give many assets on lease for at lest century. its batter to take some calculated steps and we can not rely on out comes from the cpec projects though we have to pay other debts as well.

Recommend0

jamshed

Oct 03, 2018 06:51am

@akram Indians will hang themselves to the nearest pole to convince Pakistan how bad this deal is about CPEC !! As we know from experience when Indian shout so much against something where Pakistan is involved then it must be good. CPEC bites them and we know why?

Recommend0

Sachin

Oct 03, 2018 06:51am

How is Pakistan the loser here ? The loser is China. They will have to wait and wait for payments on their loans.

Recommend0

khan

Oct 03, 2018 07:41am

With the already completed CPEC projects we are on track to become very prosperous. So, we don't need any new CPEC projects.

Recommend0

Aman

Oct 03, 2018 08:15am

Being an Indian i can say that all the Indian here talking against cpec are foolish . You should sell everything you have to the chinese and make cpec work

Recommend0

Ajaya K Dutt

Oct 03, 2018 08:22am

Wow. Pakistan realized that CPEC could be a debt trap.

Recommend0

Aqua

Oct 03, 2018 10:49am

Why so many comments from Indians?

Recommend0

Aqua

Oct 03, 2018 10:56am

@jamshed Indians are worried because once China takeover Pakistan it will attempt to do same with Indian territory. With current strength stats it will make harder and expensive for India to hold China back.

Recommend0

vivek

Oct 03, 2018 11:18am

Golden goose is fast becoming a dead albatross around neck.

Recommend0

Pat Cash

Oct 03, 2018 11:23am

@jamshed I wish it were the case

Recommend0

Born Free.

Oct 03, 2018 11:38am

The good thing about a free press is obvious, the number of people who have contributed comments says it all. Keep it up Dawn.

Recommend0

ashok

Oct 03, 2018 01:22pm

@Aqua -"Why so many comments from Indians?"

Why so less comments from Pakistanis?

Recommend0

Kamal

Oct 03, 2018 05:41pm

@Zak - India will never join CPEC. We have many ports throughout the stretch. Economically also it does not make any sense.

Recommend0

Lahori kid

Oct 03, 2018 09:20pm

@Gopal patel. Our new government doesn't need to learn any lessons, just need to read the agreements, that's all. And in doing so, it didn't take long to realize the lopsided deals PML-N government made, the new government will continue to review all projects and make sensible decisions, we pray and hope. But thank you for your concern Mr. Patel.

Recommend0

Vijay

Oct 03, 2018 09:52pm

Wise decision to rethink again considering what Sri-lanka , Maylaysia and many African countries saying about similar cooperation with China.

Finally Pakistan is understanding the deep challenges of China. Assistance with caution. Country first the interest of the people of Pakistan should always be forefront . The previous politicians were limning their pockets and forgetting about the people who elected them. It is refreshing to see Imran Khans guidance is changing will not accept "business as usual!"

Recommend0

LAHORI KID

Oct 04, 2018 08:15am

@Jai Ho And Indians are torturing and killing thousands of Kashmiri's, why you ask?